833.24/819: Telegram
The Secretary of State to the Ambassador in Uruguay (Dawson)
474. Reference Embassy’s 792, September 2, 6 p.m.95 It was not this Government’s intention in proposing the simplification of export control procedure that existing legislation involving import or exchange permits be revoked or in any way prejudiced, and it is regretted that such an impression was gained by the country agency.
The Department did, however, anticipate a more favorable reaction in view of the statements contained in the Embassy’s A–409, July 31, 12 noon.95
It seems desirable to take all practical steps to reestablish direct importer-exporter relationships with a minimum of Government intervention. It is believed here that existing documentation under decentralization tends to stifle trade and to encourage importers in the other American republics to seek other actual or potential sources of supply and exporters in this country to abandon their efforts to preserve their foreign markets and to allow the materials which otherwise might be exported to be diverted to consumption in this country. Looking, therefore, to post-war competition it seems necessary to enable the United States exporters and suppliers to regain the goodwill of their agents and customers in the other American republics.
In view of the existence of import and exchange regulations in Uruguay it would seem feasible to accept Alternative III since the importers would still be required to secure an import and exchange permit before placing an order or accepting an offer for merchandise from abroad. If, however, the country agency is reluctant to accept Alternative III, the Embassy may wish to consider the following suggestion made by one of our foreign missions.
[Page 290]The simplified import recommendation or any other suitable form would continue to be required abroad and operate in conjunction with import and exchange regulations thereby enabling the Embassy and country agency to exercise control over imports, shipping space and consignee. The import recommendation form would not, however, be forwarded to the United States and procedures of Alternative III would be operative in this country. In effect this would preserve control in the field and permit the exporters and suppliers in this country to offer their wares abroad to the same extent as they could prewar within the willingness of the foreign government to grant exchange and an import permit.
Would this suggestion prove acceptable to the country agency? It is desired to effect the simplification of procedure October 1, 1943 for those countries that have accepted Alternative III and the Embassy is requested to telegraph outcome.97